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FOR IMMEDIATE RELEASE
Succeeding in a Dynamic World: Supply Management in the Decade Ahead
How will the mission, goals, performance expectations and strategies for supply
management change to support new business models?
Tempe, AZ, November 19, 2007 – New research jointly sponsored by CAPS Research,
A.T. Kearney and ISM indicates that supply managers are concerned about a variety
of forces that will impact company and supply management strategies. Foremost among
these concerns is the impact of China, India, and other large, developing countries
on the competitive landscape. The impact is expected to be felt on both the demand
and supply side, and will create opportunities as well as challenges. In response
to these forces, companies will shift their business models, adopt different strategies,
pursue new revenue streams, further squeeze costs, make their asset base as lean
as possible, and reshape their capital structures. Overall, the mission and role
of supply management will be changed in a variety of ways. Based on an analysis
of the survey data, focus sessions, and one-on-one interviews, the research team
concluded there are seven main families of strategies that will have the greatest
impact on supply management success in the future:
- Developing category strategies that are robust and forward looking – early warning
or predictive approaches will be used as part of an improved approach to risk.
- Developing and managing value-adding relationships with suppliers – supply management
will have to understand company needs and align with suppliers that have the capabilities
to provide innovation and help create value; there will be working relationships
between buying and selling companies that are strategically important to each other,
and companies will invest in reactive and proactive supplier development efforts.
- Designing and operating multiple supply networks to meet the needs of specific market
segments – supply chain innovation and the use of multiple supply chains will be
important to future revenue and market share growth.
- Leveraging technology for internal productivity and external effectiveness – new
technologies will require practitioners who have the knowledge, insight and interests
to get the most out of them.
- Collaborating internally across functions and externally with suppliers and customers
– while collaboration is an important success factor for the future, it does not
easily fit in with the traditional view of supply management's role in the organization.
- Attracting and retaining supply management talent – talent management could be the
deciding factor between success and failure for tomorrow's supply management organizations.
- Managing the future supply management organization – despite the success of the
center-led model, some companies may benefit from tailoring the supply organization
with local leadership within a globally managed workforce.
The research team concluded that, in the next decade, supply management will have
to deliver on the promise of globalization, innovation and improved service, while
achieving value beyond cost improvement.
To review the CAPS Research Focus Study, "Succeeding in a Dynamic World: Supply
Management in the Decade Ahead", click on the following link:
http://www.capsresearch.org/publications/pdfs-protected/carterp2007.pdf
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CAPS Research is a nonprofit research organization founded in 1986 to provide leading
research to our strategic-minded corporate sponsors and to the public. Our mission
is to work in partnership with a global network of executives and academics for
the discovery and dissemination of strategic supply management knowledge and best
practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business
at Arizona State University, and the Institute for Supply Management™.
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